Your Guide To Successfully Registering Your Business In Ontario
Starting a business in Ontario is so exciting and if you’re looking to register your business in the coming weeks, congratulations! Registering your business is a crucial first step in your journey! You will need a business registry to open a business bank account or sign contracts under your company name. You need to make sure that your business complies with provincial regulations and your brand is protected; a business registration will do just that. Bizfund aim to help business owners just like you to scale their businesses through Merchant Cash Advance funding – if you are looking to scale your business reach out to see how we can support you.
While the process might seem pretty daunting initially, Ontario has made it relatively straightforward to officially register your business. In this blog, we’ll guide you through the appropriate steps to register your business in Ontario. Let’s go!
The Importance of Registering Your Business in Ontario
Registering your business in is essential, in fact it’s a legal requirement. Registering your business will make it easier for you to protect your brand and open doors for opportunities that would otherwise be out of reach.
When you register your business, you can operate under your chosen name but you must comply with provincial laws. This way, you avoid fines or penalties down the road. Ultimately though, registering your business helps you succeed longterm. It’s a way for to take your ideas to the next level.
If you do not register your business, you’re at risk of hefty fines outlined in the Ontario Business Names Act. Penalties range from $2,000 to $25,000. The size of your business determines the amount you’ll pay.
Choosing and Registering a Business Name
Choosing the perfect name for your business is one of the most exciting parts of the process! It’s your brand’s first impression and a key part of your identity. You must select a unique name that aligns with your business and complies with provincial regulations.
If you already have a name in mind, you can skip this part but if you don’t, start by brainstorming names that reflect your values services or products. Once you have a list, check the availability of your chosen name through Ontario’s business name search tool. This step is very important as it ensures no other business is already operating under the name, which can help save you a legal battle and a lot of money.
After confirming availability, you can register the name, when you register your business. Remember, registration might not be necessary if you’re operating as a sole proprietor under your name.
The Legalities Of Registering Your Business In Ontario
Registering your business in Ontario is a legal requirement that ensures your business operates within provincial regulations. Your business will likely fall into one of the three categories:
Sole Proprietorship
A sole proprietorship might be your easiest route. It’s the simplest and most affordable business structure and it requires minimal paperwork. As the sole owner, you have complete control over decisions and profits. However, you’re also personally responsible for debts and liabilities, which means your personal assets could be at risk.
Registering a sole proprietorship in Ontario costs around $60, and you’ll need to renew it every five years. This structure is ideal for small businesses or freelancers.
Partnership
A partnership might be the perfect choice for those who have two or more people to share ownership with. This structure allows two or more people to share ownership, responsibilities, and profits. It’s relatively simple to set up and costs about $60 to register in Ontario.
Partnerships thrive on mutual trust, so creating a partnership agreement is essential to outline roles, profit-sharing, and dispute resolution. Keep in mind that partners share liability, meaning each is responsible for the business’s debts. It’s an excellent option if you want to combine your skills, resources and expertise.
Corporation
Incorporating your business can provide significant benefits, including limited liability, tax advantages, and enhanced credibility.It’s a good idea if you own a larger business and would like the corporation to be a separate legal entity, meaning your personal assets are protected from business debts and liabilities.
While incorporation requires more paperwork and costs (around $360 online in Ontario), the long-term benefits often outweigh the initial investment. Corporate tax rates are generally lower than personal tax rates, and profits can be retained within the business.
After you’ve determined where your business falls, you’ll need to decide on a unique business name that complies with naming rules in Ontario. If your chosen name is already in use, you may need to adjust it.
Business Name Requirements:
- Your business name must not conflict with existing registered names or trademarks. Conduct a NUANS (Newly Upgraded Automated Name Search) report to confirm availability. The last thing you want is to get sued!
- Learn more about what terms to avoid. Avoid using words like “bank,” “trust,” or “insurance” unless approved by regulatory bodies.
- If incorporating, include legal identifiers such as “Limited,” “Incorporated,” or “Corporation” (or their abbreviations).
- The name must not mislead the public about the nature of your business.
- Names can be in English, French, or both but must comply with naming rules in either language.
- The name must adhere to decency standards, so no profanity or offensive terms.
- Sole proprietorships, partnerships, and corporations must register their business name, except if it’s the exact legal name of the owner.
After selecting a name, you’ll register it with the Ontario Business Registry. This process formalizes your business and links it to your name or your partners’ names if you’re not incorporating it. More information below.
What You Need To Register Your Business (Checklist)
- Your Businesses Name, address, contact details and escription of your business activities
- Your Business Number (BN) from the CRA for tax purposes
- Register for additional accounts such as HST/GST account and Payroll account
- Important/expert permits
- Business licenses or permits (municpal, provincial or federal if necessary)
- Registration fees ($60 – $360 depending on the category you fall into)
- Valid government-issued photo ID for the person registering the business.
- Business insurance and business bank account
- A partnership agreement if you’re forming a partnership.
- Corporate bylaws and shareholder agreements (for corporations).
You can register either online through the Ontario Business Registry (ServiceOntario website) or in person/mail by submitting an application at ServiceOntario locations or by mail.
How To Properly Register Your Business (Step By Step)
So you’re ready to register your business? Registering your business might feel overwhelming, especially with all the information we’ve covered so far, but breaking it into simple steps makes the process much easier. Here’s how to do it right, step by step:
Step One:
Decide whether you’ll register as a sole proprietorship, partnership, or corporation. Read each description above to figure out which category fits you the best.
Step Two:
Pick Your Business Name. Choose a name that reflects your brand. Check the Ontario Business Registry or NUANS database to ensure it’s unique and not already in use.
Step Three:
Register Your Business and Use the Ontario Business Registry portal to register your business name and structure officially. You’ll need details like your address and the nature of your business.
Step Four:
Get Necessary Licenses and Permits if applicable. Depending on your industry, you might need specific permits to operate legally.
Step Five:
Set Up Tax Accounts. This is super important! Register for a business number (BN) with the CRA for tax purposes.
Overview
Registering your business in Ontario doesn’t have to be difficult. You can confidently navigate the process by breaking it down into manageable steps. The good news is, that Ontario has made the registration process as simple as possible but make sure to take the time to do it right. This way, you’ll lay a strong foundation for your business to thrive.
